Band A Customers to Receive Special Compensation Over Poor Power Supply, NERC Announces

The Nigerian Electricity Regulatory Commission (NERC) has approved a special compensation package for eligible Band A electricity customers who experienced service disruptions arising from nationwide generation constraints between February and March 2026.

The commission announced the decision in a directive aimed at cushioning the impact of prolonged power shortages on customers who pay premium tariffs in exchange for higher levels of electricity supply.

In a statement released on Thursday, NERC said the compensation framework was introduced following significant generation shortfalls across the Nigerian Electricity Supply Industry (NESI), which affected the ability of electricity distribution companies to meet service commitments to Band A customers.

According to the regulator, the power shortages were largely caused by inadequate gas supply to generating plants as well as acts of vandalism targeting critical gas and transmission infrastructure.

“These factors were beyond the direct operational control of Distribution Companies,” the commission stated.

Under the directive, officially designated as Directive No. NERC/2026/002, compensation will apply specifically to the period covering February and March 2026. NERC explained that where Band A feeders recorded an average daily supply between 18 and 20 hours, compensation would continue under the existing framework already established in Addendum No. NERC/2024/003.

The arrangement applies to both Maximum Demand (MD) and Non-Maximum Demand (Non-MD) customers.

However, customers connected to feeders that received less than 18 hours of daily supply during the affected period will benefit from a special compensation package.

For Non-MD customers, compensation will be equivalent to 20 percent of the approved February 2026 energy cap applicable to the affected feeder.

Similarly, Maximum Demand customers will receive compensation equivalent to 20 percent of the average energy billed per customer in February 2026. NERC further clarified that affected Band A feeders will not be downgraded during the compensation period despite failing to meet the required service levels.

The commission also outlined the modalities for implementing the compensation. According to the directive, prepaid customers will receive compensation through token credits, while postpaid customers will benefit through direct bill adjustments.

The regulator mandated Distribution Companies (DisCos) to complete compensation for February 2026 no later than May 31, 2026, while compensation for March 2026 must be concluded on or before June 30, 2026.

Importantly, NERC directed that compensation credits must not be used to offset existing customer debts. Distribution companies are also required to clearly communicate to consumers the value and period covered by any compensation received.

The latest intervention reflects ongoing efforts by the electricity regulator to protect consumers while promoting accountability and service delivery standards within Nigeria’s power sector.